Who doesn’t want to have a prosperous and happy family? Did you know that 2 out of 3 divorces are caused by economic problems? Here are some simple and easy tips to do, so that your family is more prosperous financially and happy.
Have Priorities: Financial Expenditures and Goals
Each family needs to discuss priorities in managing expenses and financial goals. The first step you can take is to start by discussing finances with family members: husband, wife, and children. Discuss simple and important things, such as making a financial budget. In addition, also discuss what expenses should be prioritized. For example, if the family is still renting a house, then prioritize investing in buying a house. In the family, there needs to be intensive communication and have similarities in priorities.
Manage Expenses and Finances Correctly
Usually, the wife holds the position of finance minister or finance director in the family. Ideally every family member, husband, wife, and children must learn to manage finances properly. For example, starting from making a financial budget and making financial records. In addition, all family members must also learn how to spend their money.
Add Source of Income
What are your family’s sources of income? Do you only rely on income from your salary? Do you already have investments or passive income? There are 3 sources of income for a person, namely income from active work (salary, bonus, and allowances), income from investment profits (deposit interest, mutual fund investment returns, stock dividends), and business profits (boarding house, franchise, royalties). If you don’t currently have a source of income other than salary, then you need to consider it.
Avoid Consumptive Debt
Talking about debt, there are two types of debt, namely productive debt, and consumptive debt. Consumptive debt is debt that is bad and does not bring direct financial benefits. Examples of consumer debt are credit card debt for vacations, home debt to buy furniture products, and others.